Corruption News

The U.S. Takes Steps to Tackle Corruption in 2024

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The United States has initiated new anti-money laundering policies to prevent illicit and corrupt finances—often referred to as dirty money—from infiltrating the American economy. These measures are essential for providing law enforcement, the private sector, and national security agencies with the information and resources needed to close loopholes that allow nefarious actors to exploit the U.S. financial system.

Why This Matters

Each year, over $300 billion in laundered money flows through the U.S. economy, accounting for 15% to 38% of the estimated $800 billion to $2 trillion laundered worldwide. This staggering statistic underscores the U.S.’s reputation as a leading financial haven for dirty money.

Details

The new anti-corruption policies have been introduced by the Financial Crimes Enforcement Network (FinCEN), the regulatory body within the U.S. Department of Treasury tasked with protecting the nation against illicit finance. FinCEN’s recent push for greater transparency aims to close policy gaps that allow ill-gotten gains to be hidden. Key advancements include:

  • Beneficial Ownership Registry: Collects information on the owners of companies created in the U.S.
  • Proposed Rule for Residential Real Estate Market: Requires disclosure of information on non-financed transactions involving trusts and legal entities.
  • Proposed Rule for Investment Advisers: Mandates compliance with specific anti-money laundering obligations.

All three initiatives are undergoing or have undergone review by the private sector and civil society, which will provide valuable feedback on strengthening these policies and maintaining the integrity of the U.S. economy.

Bottom Line

Shortly after his inauguration, President Joe Biden launched his strategy on countering corruption, emphasizing the need to combat illicit money entering the U.S. These new policies are a significant step in addressing the pressing challenges of corruption and dirty money in the U.S. While there is still room for improvement, these measures should be seen as a positive move towards a more transparent and secure U.S. economy.

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